2017 (10) TMI 926

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....f income declaring a total income of Rs. 2,68,71,345/-. Subsequent to the processing of return u/s 143(1) of the Income Tax Act, 1961 (hereinafter called 'the Act'), scrutiny proceedings were initiated. During the course of assessment proceedings, the Assessing Officer observed that the assessee had claimed depreciation of Rs. 5,41,406/- @25% on the tenancy rights valued at Rs. 21,65,625/-. On query from the assessee, the assessee submitted that the assessee had, some time back i.e. relevant to assessment year 2008-09, settled the dispute between the legal heirs of a former partner late Shri P.C. Aggarwal and the amount paid towards the tenancy rights were amortised in the books of the assessee firm on which this depreciation was claimed. H....

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....x erred in confirming the order of the AO disallowing depreciation on tenancy rights amounting to Rs. 5,41,406. 4. That the order of the learned authorities below being contrary to the facts and circumstances of the case and in law the appeal be allowed." 3. Learned AR submitted that the order of the ITAT Mumbai Bench in the case of M.M. Nissim & Co. vs ACIT (supra) relied upon by the Assessing Officer had been wrongly relied upon. Ld. AR sought to place reliance on the judgment of the Hon'ble Apex Court in CIT Kolkata vs Smifs Securities Ltd. (2012) 24 taxmann.com 222 (SC) and submitted that tenancy rights were akin to goodwill and, therefore, the ratio laid down by the Hon'ble Courts in the case of goodwill will also apply to ....